Trump allows cheaper, dyed diesel on highways to blunt historic fuel-cost spike ahead of midterms
The U.S. national average price of diesel topped $6 a gallon in September for the first time ever, as fuel supply disruptions pushed up transportation costs in the country.
TL;DR
- President Trump has signed an executive order to temporarily permit the use of red-dyed diesel on highways.
- Red-dyed diesel is typically reserved for off-road vehicles and farm operations and is exempt from highway fuel taxes.
- The order aims to reduce record-high fuel costs for truckers and farmers.
- The U.S. national average diesel price exceeded $6 per gallon in September due to supply disruptions linked to conflicts in Ukraine and Iran.
- The measure also defers federal excise taxes on highway diesel through the end of 2026, with exploration of eliminating these deferred taxes.
- The White House cited tight global supply and refining capacity issues for the price surge.